What house can I afford on a £25,000 salary? What you could borrow, what it costs each month, and where it buys a home.

You could borrow£113k£100k–£138k depending on the lender

Home price, 10% deposit£125k£13k deposit

Monthly payment£6305.37% 2-year fix, 30 years

3-bed houses in reach1%of districts in England & Wales

On a £25,000 salary most lenders would lend around £112,500, four and a half times your income. A cautious lender, or one weighing up children and car finance, might stop nearer £100,000; a few go to £137,500 for higher earners.

With a 10% deposit of £12,500 that buys a home for about £125,000, at about £630 a month at today's average 2-year fixed rate of 5.37%. If rates were two points higher when you remortgage, it would be about £777. As a first-time buyer in England you would pay no stamp duty at this price.

That price buys a typical 3-bedroom house in 25 of 2,219 postcode districts, from 12% of districts in North East to 0% in West Midlands.

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What £25,000 buys with different deposits

Deposit	Home price	Deposit	Rate	Monthly	Stamp duty, first home	Cash needed
5%	£118,000	£5,500	5.7%	£653	£0	£9,999
10%	£125,000	£12,500	5.37%	£630	£0	£16,999
15%	£132,000	£19,500	5.26%	£622	£0	£23,999
25%	£150,000	£37,500	5.13%	£613	£0	£41,999

Mortgage of £112,500 (4.5 × income) over 30 years at the Bank of England's average 2-year fixed rate for that loan-to-value (Sep 2026). Stamp duty for a first-time buyer in England (April 2025 (England) and October 2022 (Wales)); cash needed adds the deposit, stamp duty and typical fees (solicitor, survey, mortgage fee, removals).

Where £125k buys a 3-bedroom house

Stanleytypical 3-bed £119k Peterleetypical 3-bed £96k Crooktypical 3-bed £121k Ferryhilltypical 3-bed £102k Ferndaletypical 3-bed £112k Shildontypical 3-bed £85k Trimdon Stationtypical 3-bed £109k Wingatetypical 3-bed £113k New Tredegartypical 3-bed £114k Moor Rowtypical 3-bed £120k

Just out of reach: Bishop Auckland (£141k).

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By region

North East

12%

Yorkshire and the Humber

North West

Wales

East Midlands

East of England

London

South East

South West

West Midlands

Share of postcode districts where a typical 3-bedroom house sold for £125,000 or less over the last five years, in today's money.

Questions

How much can I borrow on a £25,000 salary?

Most lenders lend about 4.5 times income, so around £112,500 on £25,000. Cautious lenders, or households with children or other loans, are nearer 4 times (£100,000); some lend up to 5.5 times (£137,500) to higher earners.

Can I get a £130,000 mortgage on £25,000?

Possibly: it is 5.2 times income, which some lenders offer, mostly to higher earners and some professions, if your outgoings are low.

What house price can I afford on £25,000?

With a 10% deposit, about £125,000: a £12,500 deposit plus a £112,500 mortgage. With 5% down it is about £118,000.

What would the monthly payments be?

About £630 a month on a £112,500 mortgage over 30 years at 5.37%, the Bank of England's average 2-year fixed rate at 90% loan-to-value (Sep 2026). If rates rose 2 points it would be about £777.

Where can I buy a house on £25,000?

A typical 3-bedroom house sells within £125,000 in 25 of 2219 postcode districts in England and Wales (1%), most of all in North East (12% of districts), including Stanley, Peterlee, Crook, Ferryhill.

A guide, not mortgage advice: lenders decide on your full circumstances, credit history and outgoings. Rates: Bank of England quoted household interest rates (Sep 2026). Prices: HM Land Registry sales in the last five years matched to the EPC register, in today's money.